A company's balance sheet contained the following information: Assuming Notes Payable is the only other item on the balance sheet:

Question

Quizplus · Accepted Answer

Since Total Assets = Total Liabilities + Stockholders' Equity, and stockholders' equity is given as $400,000 in the question, we can set up the equation:
$500,000 = Total Liabilities + $400,000
Total Liabilities = $100,000
Since the only other liability on the balance sheet is Notes Payable, we know that Notes Payable must equal $72,000 in order for Total Liabilities to equal $100,000.

A Company's Balance Sheet Contained the Following Information: Assuming Notes